What is missing and verify the transaction price

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Delta Builders Inc. has secured a $12 million contract with Dixie Food Franchise. They will be building three restaurants for the company. The estimated total costs for the project are $10 million, meaning that Delta Builders Inc. will have $2 million in gross profit. The project will take three years, and is starting March 1, 2020. Had each of these projects been stand-alone, Delta Builders Inc. would have estimated the costs as $3 million, $4 million, and $4 million, respectively.

Problem 1: After reading through the contract between Delta Builders Inc. and Dixie Food Franchise, Analyze the contract sample to determine what is missing and verify the transaction price, and what information stands out, what suggestions would you have for calculating transaction pricing

Reference no: EM132727802

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